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1.3 Suppose that all five of the producers of ready-mix cement in the Denver area have entered into a cartel agreement, so that they are

1.3 Suppose that all five of the producers of ready-mix cement in the Denver area have entered into a cartel agreement, so that they are producing and pricing at the profit-maximizing monopoly level.

How would a firm's managers "cheat" on this agreement?

Given that the four other competitors' reactions are not instantaneous, can cheating be profitable?

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